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Chocfix produces hot cocoa mix. The company has two divisions, each operating as a profit center. The transportation division purchases raw cocoa in the Ivory
Chocfix produces hot cocoa mix. The company has two divisions, each operating as a profit center. The transportation division purchases raw cocoa in the Ivory Coast and transports it to the mixing division in Atlanta, Georgia. The mixing division processes the raw cocoa into the cocoa mix. It takes two pounds of raw cocoa to yield one pound of cocoa mix. Variable and fixed costs per pound of raw cocoa in the transportation division and variable and fixed costs per pound of cocoa mix in the mixing division area as follows: (Click the icon to view the data.) The market price for a pound of raw cocoa supplied to the mixing division in Atlanta is $14. Chocfix can sell each pound of hot cocoa mix for $42. Read the requirements. Requirement 1. What are the minimum and maximum transfer prices per pound of raw cocoa transported to the mixing division at which both divisions are willing to transact with each other? Assume the transportation division has unused capacity to transport raw cocoa to the mixing division. Minimum transfer price = Maximum transfer price = Chocfix produces hot cocoa mix. The company has two divisions, each operating as a profit center. The division purchases raw cocoa in the lvory Coast and transports it to the mixing division in Atlanta, Georg Data table able and fixed cos \$14. Chocfix can N cocoa transporte isportation division
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